Apple is reportedly planning to roll out its mobile wallet service in the US
later this month, together with iOS 8.1

Apple could launch its mobile wallet service, Apple Pay, in the US later this month, with an update to its iOS 8 operating system.

The iOS 8.1 update is scheduled for public release on October 20, according to Bank Innovation. Sources close to Apple reportedly told the news website that the update will bring support for Apple Pay.

Apple Pay, announced last month, will work with iPhone 6 and iPhone 6 Plus thanks to an in-built near-field communication (NFC) chip – similar to those used in Oyster cards and contactless credit and debit cards in the UK.

iPhone 6 owners in the US will be able to use this chip, together with the iPhone's Touch ID, to make secure payments by simply touching their iPhone to a terminal in a shop.

Apple Pay will also work with the Apple Watch, which is compatible with iPhone 5, iPhone 5c and iPhone 5s. The company has not announced any plans to launch Apple Pay outside of the US.

The launch could coincide with Apple's iPad event, which is thought to be scheduled for around that time. The new iPads are rumoured to come with Touch ID, so could also theoretically support Apple Pay.

Reports suggest that Apple will release an iPad Air 2, thought to be a continuation of the current iPad model, and an iPad Pro, which will have a larger screen and also a faster A8X processor than current models.

Earlier this week Bank Innovationreported that PayPal was excluded from Apple Pay because the payment platform partnered with Samsung on its Galaxy S5 smartphone during negotiations with Apple.

PayPal’s now-former president David Marcus was reportedly against the Samsung deal, knowing that it would jeopardise PayPal’s relationship with Apple. However, he was overruled by eBay CEO John Donahoe.